Background

 Keynesian Economics or Theory is an economic theory developed by John Maynard Keynes (183-1946), a British Economist.  The term “Keynesian Economics or Theory” was named after John Maynard Keynes.  Keynes developed this economic theory in an attempt to understand the Great Depression in 1930s.  The ideas of this economic theory were written in Keynes’ writing titled “The General Theory of Employment, Interest, and Money”.  Keynesian Economics was based on the circular flow of money.  Keynesian Economics is one of the three main schools of thought in macroeconomics (Classical, Keynesian, and Monetarist).